4 Snippets of Advice for P272 to Ensure your Business is Ready for the Mandatory Change
What is P272?
P272 is a mandatory industry-wide change (instigated by OFGEM) for the half-hourly (HH) settlement of maximum demand meters with a meter profile of 05, 06, 07 and 08. Settlement is the process by which electricity volumes are allocated to suppliers.
In simple terms, this legislation changes how suppliers will settle power consumption and enforce Half Hourly (HH) metering where required. The legislation is designed to help secure future UK electricity demand and help suppliers plan the generation of electricity.
Following the enforced change and going forward, an 05-08 meter will be automatically read every half hour, over the full year, giving your supplier your actual consumption from an enormous 17,520 reads! This is all involuntary and your bill will become far more accurate. However, it will also likely be a lot more complicated and we can also expect to see changes to the way that suppliers charge to supply that energy. So it's even more vital that you to ensure you Compare Half Hourly Electricity get the best deal.
There are a few challenges with P272......
Each supplier faces a number of challenges with how they manage the implementation of P272 legislation and the associated costs. It is up to your energy supplier to ensure that your meter is compliant with the regulation but not all suppliers are communicating the requirements in simplest and most concise way. If your energy requirements fall within P272 legislation, then your current energy supplier should have already communicated the challenges/ changes to you and will have put the relevant steps in motion to make sure that you have the correct meter in place.
If you are a client of ours, who has their energy contract with us, then we will already have spoken to you about P272 if it affects your business. However, having worked closely with the energy supply chain since the regulation was announced, it's evident that the process is not that straightforward. Suppliers are struggling with demand for migration to Half Hourly electricity meters and some are experiencing internal issues regarding the allocation of the work involved with the migration.
If the deadline is not met, suppliers are going to be fined (it's also going to be made public knowledge) and this will be a great indicator of those suppliers that are struggling to deal with the implementation of P272. Because of this, it is important to keep a close eye on your billing and costs. The silver lining is that any industry fines through non-compliance will be directed at the energy suppliers themselves and not the businesses that the energy is supplied to.
The installation of Half Hourly electricity metering is coupled with its own legislative requirements where a Meter Operator (MOP) agreement is mandatory and the nomination of a preferred Data Collector (DC) is advised. Whilst most suppliers have selected their own MOP and DC providers, through our supply chain, we can generate MOP and DC contracts on request and we don't charge; it's simply value added. In most cases the default rates associated with this will be more expensive than if you have made your own arrangements through us.
What's our advice regarding P272?
1. Know your capacityIf your business has gone through the P272 changes, you will start to be charged for capacity. Depending on your energy supplier and the contract in place, you may or may not see this as a separate line on your billing. For future contract renewals and negotiation, you will need to know your capacity so that you can check that your business is being charged for the right amount. We make sure the contract offer matches the invoiced tariff and that capacity charges are set correctly to avoid clients paying over the odds.
2. Outsource your energy procurementOkay, we may be shamelessly plugging one of our core services here (business energy procurement) but this legislation can be tricky to get your head around. If you are unsure of where you stand; speak to us. We can assess your current situation, de-mystify the change and ensure your new bill is correct. We can find out if you have been successfully migrated or liaise with your supplier to find out what needs to be done to ensure that your energy contract is on the right track and that your business is fully compliant. Additionally, we can make sure that you have the correct energy product for your business needs and streamline your business energy costs. We can help you find ways to reduce consumption during the more expensive periods too to avoid certain charges (through Half Hourly data, it's possible to identify areas or times where consumption is higher than usual/ necessary).
3. Shop around for your nominated MOP agreement providerIf your business' meter arrangements meet the requirements for P272 then you will have to set up a MOP agreement. But remember, you do not need to use your supplier to provide these services and you are free to shop around and choose the right provider to suit your business needs. We can generate MOP contracts on request.
4. Take advantage of the benefitsWhilst there are a number of headaches associated with the implementation of P272, there is a lot to be gained from more frequent, automated meter readings and correlated billing accuracy and we can help you to understand and take advantage of the opportunities P272 has created. Having easy access to data and reporting minimises the risk of any incorrect charges and heightened awareness and understanding of your business' energy consumption will allow you to implement efficiency strategies and make cost savings throughout your energy strategy and portfolio. We can help you to take control of your electricity data, consumption data and what your supplier is basing your bill on.
Essentially, those businesses that understand the factors that affect energy usage, will find it easier to plan future energy spend and reduce consumption where applicable. We'll give you the ability to control how and when you use your electricity to be more efficient, reduce consumption at peak times, lower your costs and find the most suitable deal when your contract is due for renewal.
There's a real opportunity that's been created with the implementation of P272; ensure your business makes the savings associated with it and take control over your business energy by calling 01226 611511. We'll compare half hourly electricity deals and let you know which is the best for your business. It's that simple.
"Each supplier faces a number of challenges with how they manage the implementation of P272 legislation and the associated costs. It is up to your energy supplier to ensure that your meter is compliant with the regulation but not all suppliers are communicating the requirements in the simplest and most concise way."